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Comment: You seem to be conflating

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In reply to comment: You overlook (see in situ)

You seem to be conflating

the way things are now with the way things could be in an insurance-based protection model. You have to drop the current framework completely to see new possibilities.

In your scenario of theft, yes, you would simply get a payout from the insurance company just like you do today. Why would you be paying for arbitration and punishment? That's the insurance company's job if they want to attempt recovery of their losses.

On a side note, did you really open that post with a pro-IRS statement? On the Daily Paul? Just curious...